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Have a baby in this country and get a passport within 2 years

I’ve been talking a lot about economic and market risks in Notes lately.

But there’s a potentially even larger risk that you’re completely ignoring today.

If you live, work, invest, own a business, bank or hold assets in a single country, you’re putting all of your eggs in one basket.

You’re making a very large bet that everything will be alright in that one country – forever.

It would only take[...] Click here to continue reading

Tesla stock soars on news they ‘only’ lost $717 million

Sometimes I feel like I’m living in an alternate universe… it’s like the financial version of the ‘upside down’ from Stranger Things.

Case in point: last night the infamously loss-making electric car maker Tesla announced its quarterly earnings.

As usual, the numbers were gruesome. Tesla’s net loss was TWICE AS BAD as the previous quarter, a record NEGATIVE $717 million. That’s a LOT WORSE than analysts were expecting.

After adjusting for various[...] Click here to continue reading

Why Japan may spark the next crisis

In a world full of reckless and extreme monetary policy, Japan no doubt takes the cake.

The country has total debt of more than ONE QUADRILLION YEN (around $10 trillion) pushing its debt-to-GDP ratio to a whopping 224% - that puts it ahead of financial basket case Greece, whose debt-to-GDP is around 180%.

Japan spent 24.1% of its total revenue (appx. 23.5 trillion yen) last year servicing its debt – both paying down[...] Click here to continue reading

Finally. A major victory for common sense

In a major victory for common sense, a group of cosmetologists defeated an insanely stupid regulation passed down by the state of Louisiana.

Louisiana, just like the other 49 states in the Land of the Free, governs licensing requirements for dozens… hundreds of professions… ranging from athletic trainers to tour guides to barbers and cosmetologists.

And most of the time the licensing requirements are just plain idiotic.

In Louisiana, for example, the[...] Click here to continue reading

Bankrupt Philadelphia plunders its property owners for cash

Like a lot of major cities in the United States, Philadelphia is in pretty rough financial condition.

One of the city’s biggest problems is its woefully underfunded public pension, which has a multi-billion dollar funding gap.

In 2001, Philadelphia’s pension fund was still in decent shape with a funding level of 77%, meaning that it had sufficient assets to meet 77% of its long-term obligations.

By 2017 the funding level had dropped[...] Click here to continue reading

No one has ever lost this much money in all of human history

As you you’ve no doubt seen by now, shares of Facebook plunged around 19% this morning.

In fact it was down as much as 25% in after-hours trading, wiping out $120 billion of wealth in a matter of minutes.

To be clear, that is the largest single-day loss of value ever seen in the history of the world.

(And Mark Zuckerberg’s net worth fell by $17 billion as a result… though I[...] Click here to continue reading

Second passports now a “trophy” for the ultra-wealthy

I have to chuckle a bit…

The mainstream media is now picking up on the idea of a second passport; and even adopting the Sovereign Man ethos of having a “Plan B.”

Bloomberg published a widely-distributed article with the headline:
Where the Super-Rich Go to Buy Their Second Passport
The article begins…
Cheaper than a Gulfstream, nimbler than a superyacht, a second passport—or a third or fourth—has become another trophy for the ultra-wealthy.
[...] Click here to continue reading

Two giant US pension funds admit there’s a BIG problem

I’ve been talking a lot about the looming pension crisis…

My short thesis is, if you’re depending on a pension for your retirement, it’s time to start looking elsewhere.

Pensions are simply giant funds responsible for paying out retirement benefits to workers.

And today, the nation’s 1,400 corporate pension plans are facing a $553 billion shortfall. And, according to Boston College, about 25% will likely go broke in the next decade.

[...] Click here to continue reading

One of the most outrageous investment deals I’ve ever been offered

One of the biggest banks in the world – a name you would certainly know – just pitched its top clients on a major investment.

The deal was only offered to its private clients (with at least $50 million in net assets); and as I started reading through the opportunity, I started to understand why…

We talked about this in a recent podcast: this particular deal was a $500 million real estate investment.
[...] Click here to continue reading

Government’s already-dismal budget forecast just got 106% worse

Yesterday the Office of Management and Budget released a new report called the “Mid-Session Review” of the US federal budget.

It’s something they’re required by law to do-- periodically review and update the government’s budget and track the changes.

The last government budget update was released in February. And according to the February budget, the government’s deficit for this fiscal year was going to be a whopping $873 billion.

Now they’re projecting[...] Click here to continue reading